US Dollar Bulls Dominate as Euro and Pound Shorts Build

US dollar bulls have returned in force as futures traders increased bearish exposure to both the euro and British pound. The US dollar index has rallied 2.6% in 11 days, with net-long exposure rising by $12.5 billion to $17.3 billion, the fastest weekly increase in seven years.

The largest gains were seen in the US dollar, which saw a significant surge in bullish bets. In contrast, the euro and British pound have seen bearish momentum build, with futures traders increasing net-shorts by 25k contracts and 50.5k contracts respectively.

Looking ahead, it remains to be seen whether this trend will continue. However, some analysts believe that the US dollar's strong economy and inflationary pressures could lead to further gains for the currency.